National Republican., 1887-08-06
SECRETARY FAIRClIILD'S OFFER
How 1t Is Viewed by the Leading
Papers of the Country.


New York Commercial BUhe,i,,. The
Secretary's order respecting prepayment OF
interest on bonds, and inviting proposals
FOR the sale OF bonds to the amount required
or the sinking fund, would take from the
reasury prior to Jau. ] not far from $i6,.
0uOC00, II the boLdholders should be dis
pest TO surrender their coupons and secur-
lies on terms satisfactory TO the Secretary
The fact that this outlet for the accumu
'ated surplus has beea opened, 1t is evident
"ill have an important influence on the
curse of the money market for some time
come, and 1t was probably the autIcipa
ion Of this announcement which induced
ome strong parties 10 begin the purchase
Of securities on Wednesday, The S.cre
'ary deserves credit for meeting thus frankly
he difficulties presented. HIS order IL
rdeed recognition of the fact that serious
nd even dangerous locking up OF money IA
be treasury was likely to result from the
'perstioh of existing laws, unless met by
,uch measures of relief. While full credi,
S given to the Secretary FOR dscharging
his duty In the premises, however, the Gues.
ion remains, how far will the measures he
los taken suffice to meet existing needs?
New York Tribune: Secretary Fairchild
hits the nail on the head in his re n Irks, II
rot in his order. He orders prepayment OF
interest due january or earlier, proviiei
hondbolders please to take two per cent.
per anrum less than the amount OF their
tIaiuls, and purchase OF four and half per
cent bonds, provd, d holders please to
of, r them to to the treasury AZ terms
which the Secretary may approve. Then
he says that II the bopdholders do not ac-
cept these terms "it would seem that they
aie not in very great need OF money"
Certainly that would be the legitimate
conclusion. But without waiting for the
result OF Secretary Fairchild's experimental
proposition, he can be Informed that bond
holGeis are not In very great need Of
money.
The point Of the order is that part OF the
bonds are held by institutions which have
customers who do need money very greatly.
II these institutions, IN any time of pres
| sure, can get cash for their coupons and
lend itGt high rate Of interest to their needy y
| customers, some of them will do so, These
| considerations, while they modify estimates
| 0f the amount OF money likely to be drawn
| from the treasury, do not deprive the Sec
re,ary Of whatever credit is due for making
| provision 10 meet emergencies. His readi
ness to anticipate interest and to purchase
bonds will undoubtedly open an outlet, IT
any time OF need, for part Of the money
accumulated In the treasury. IL In extern
the relief thus afforded proves dsappoint
ing, the Secretary can say with truth tina
the real difficulty, namely, that those who
most need money are not bondholders, Il
one that he cannot remove.
New York Star: The policy adopted by
Secretary Fairchild regarding the purchase
OF bonds for the sinking fund aud the an
iicipation OF interest on the public debt Ia
snlutary one. 1t will relieve those appre
hcnsions Of strlpgency In the money mar
ket that have recently been widely enter
taiEed In commercial circles. The publi
Nfi do, ,aNa. L..s
trouble, relief Is at hand, and that knowl
edge Will give ilrmness to values and conf
dence to enterprise. With regard to tn
| prepay mtnt Of interest, with a rebate at
per cent, 1t is fair to say that We are no
clear that the experiment will be entirel
successful. We do not believe that tn
amount Of coupons sent In will be yer
large. The bonds are largely held by ex
cCutoTs Of estates aud trustees and director
of large institutions, who will prefer II
leave their Investments as they are rathe
lbnn disturb them for 9 per cent. rebate
| We incline, therefore, to the belief tina
S,creisry Fai.child will find 1t polite an
advisable to prepay interest without rebate
as his predecessors have done. The cours
| II our financial markets yesterday plainl
showed the beneficial effect OF the Seer,
'afy's wise and timely action.
Troy Daily Times The amount of inter
| tst covered Dy secretary falrchlld's circu
lar is something over S29, 900, 900, and tn
requirements OF the sinking fund amour
to SG6, 100000 more. We believe II is be,
Ter 10 unload the treasury In this manuel
snd 10 the extent indicated, than 1t wou
he TO retain the money In the treasur
vaults; but is TO be hoped one Of these day
the country VIII enter upon line OF polic
which viii reduce The surplus aud keep th
money in circulation by undertaking grea
and much.reeded public enterprises. Thl
will be far better than anticipating intel
est or purchasing our bonds at high rates Q
premium.